Keep your business well protected from employee fraud with these tips.
As an employer, it’s important to take notice of your employees. To celebrate their triumphs and to keep a watchful eye on those that have fallen a bit behind. However, despite your vigilance, sometimes employee actions slip through the cracks; for better and for worse. Sometimes, your employees are dishonest. Employee fraud is more common than you think. Check out what you need to know about employee fraud and how you can prevent it from happening.
The Most Common Types of Employee Fraud:
The majority of businesses affected by claims of employee fraud are most affected by stealing corruption, and financial statement fraud. While these are the most common types of fraud, they aren’t the only types of fraud that exist. Small businesses are also affected differently than larger businesses. Corruption makes up the majority of small business cases, followed by billing fraud, and check tampering. While all cases of fraud are devastating to a business, they’re even more so for small businesses. In fact, small businesses suffer a six percent higher median loss than their larger counterparts.
How to Protect Your Business:
Most businesses that are affected by employee fraud never recover the money that has been lost. As a small business, you can’t afford to lose such large sums of money. Keep your business well protected with the right insurance and take precautionary measures. Before hiring your employees, ensure that you conduct a background check. That way you can eliminate any candidates that pose a greater risk to the safety of your business. Additionally, it’s important to not give any one employee too much control over your business finances. Divvy up the tasks so that there’s a balance of power and responsibility.
Keep your business as safe as can be with the right commercial insurance. That way you can rest easy knowing that you’re well protected. The professionals at Phocus Insurance can find you the best policies for your needs. Located in Phoenix, Arizona we serve all your personal and commercial insurance needs. Contact us for more information.
